The greatest growth will be seen in Prime Central London closely followed by the neighboring Prime South East area, with 22.7% and 21.3% respectively. The Prime UK market over the same period is expected to grow by 15%.
Over the past couple of years, the strongest activity and house price growth has been in these markets due to the level of foreign investors and equity rich purchasers who have been less affected by the constraints in mortgage finance. Going forward this is expected to continue with London and the South East likely see the strongest growth, piggy-backing any economic recovery.
Outside prime markets, the initial outlook is not so rosy with negative growth predicted. However over the 5-year period, most regions within the mainstream UK market are expected to experience positive price growth.